If you live outside the UK and rent out a UK property, your letting agent or tenant must withhold 20 percent of the rent and pay it to HMRC, unless you have applied for approval to receive it gross. Many overseas landlords lose this 20 percent for months or years before realising they could have applied to stop it.
We prepare and submit Non-Resident Landlord Scheme applications, file the Self Assessment return that goes alongside it, and handle Capital Gains Tax reporting if you sell a UK property. This connects directly into our landlord accounting and Self Assessment services.
The 20 percent withholding is the default position under the Non-Resident Landlord Scheme, and it continues indefinitely unless the landlord actively applies for approval to receive rent gross. Letting agents are legally required to withhold this amount regardless of how compliant the landlord’s tax affairs actually are. This is exactly why the application matters as soon as a property starts being let, not after months of reduced income. We prepare and submit the application as part of setting up a new non-resident landlord.
This service is for anyone whose usual place of abode is outside the UK but who owns UK property.
We prepare and submit the correct form, NRL1, NRL2, or NRL3, depending on whether you are an individual, company, or trustee.
We prepare and file your UK Self Assessment return, offsetting any tax already withheld.
We coordinate directly with your letting agent to confirm your approved status and stop unnecessary withholding.
If you sell a UK property, we handle the required non-resident Capital Gains Tax reporting.
Yes, by applying for approval to receive your rent gross. Once approved, your letting agent or tenant pays you in full, and you settle tax through Self Assessment instead.
Yes, approval only changes how the tax is collected. You still owe UK tax on the rental income through your Self Assessment return.
If your tenant pays more than £100 a week in rent, the obligation to withhold and pay HMRC falls on the tenant instead.
Yes, non-residents have been liable for Capital Gains Tax on UK property since 2015, with specific reporting deadlines that apply.
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